CREDIT CARD INDUSTRY COMMISSIONING EVIDENCE ON CONSUMER IMPACT OF GOVERNMENT PROPOSED CHANGES
UK’s 30m credit card holders facing less choice and higher cost under government proposals.
The UK Cards Association (formerly part of APACS) which represents the UK credit card industry has today (27th October 2009) issued an initial response to the publication of BIS* consultation on credit and store cards.
It is essential that the case for change is supported by robust evidence. The industry has commissioned a programme of comprehensive research to demonstrate the impact of the governmentís proposals on consumer choice and the cost of credit cards to consumers. The industry will publish its evidence by the end of the year.
The credit card industry remains entirely committed to the process of review and making changes if and when they can be shown to be in the best interests of credit cardholders. It has been actively engaged with BIS throughout the year since presenting proposals to assist hard-pressed consumers following the Credit Card Summit held last November.
Melanie Johnson, recently appointed Chair of The UK Cards Association, comments;
ìThe industry wants to get things right for its customers. Now is not the time for us to talk about the detail but to marshal the evidence needed to respond to the governmentís proposals. We need to be able to demonstrate what impact these would have on consumer choice and the costs to customers of using credit cards.
ìWe have seen customers respond to the credit crunch by using their credit cards differently than was the case five years ago. Credit card debt reached a five year low in 2008 and is still decreasing; 60% of credit card users are paying their credit card bills in full every month. And APRs remain lower now than in the past. These are important changes to the credit landscape and itís important we maintain the flow of credit to customers who want to have the flexibility and ease of use that credit cards offer.
ìBefore we tell government of our concerns that these new proposals could lead to some customers having a lot less choice and to extra costs for many of them, we will be reviewing the evidence and we expect the government to do the same. These proposals risk disadvantaging more customers than they protect.”
The industry remains entirely committed to lending responsibly; to being transparent; and to helping its customers take responsible borrowing decisions. Should a customer get into financial difficulty they can expect to being treated sympathetically and fairly.
For further information contact The UK Cards Association Press Office on:
Compare credit cards.